This plant is endemic to the Azores, where it is found at the islands of S. Jorge, Pico, Faial, Flores and Corvo (Borges et al. 2005). Its area of occupancy is around 15 km² (Commission of the European Communities 2009).

It has been estimated that the population was between 500 and 600 individuals in 2004. There are only a few subpopulations that are fragmented and suffer from strong genetic isolation (Commission of the European Communities 2009).

Myosotis azorica is an ecotone species associated to natural humid grasslands. It occurs in big naturally disturbed areas. It can be found in the Habitats Directive listed habitat 6180 "Macaronesian mesophile grasslands" (Commission of the European Communities 2009).

Commission of the European Communities. 2009. Composite Report on the Conservation Status of Habitat Types and Species as required under Article 17 of the Habitats Directive. Report from the Commission to the Council and the European Parliament. Brussels.